Which of the following is a characteristic of self-employed individuals?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

Self-employed individuals typically provide their own tools, which is a hallmark of running their own business or operating as a sole trader. This characteristic distinguishes them from employees, who usually have their tools and equipment provided by their employer. When someone is self-employed, they bear the responsibility for supplying the necessary materials to perform their work, which can include everything from basic tools to more specialized equipment, depending on their field of work.

The other options relate more closely to traditional employment. Wearing a uniform is usually associated with employees who need to adhere to company policies regarding appearance and branding. Being paid net of tax generally applies to employees, where their employer handles tax deductions from their salary. Finally, a contract of service is an indicator of employment relationships rather than self-employment, where individuals operate independently. Thus, the characteristic of providing one's own tools solidly aligns with the definition and expectations of self-employed individuals.

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